texasholdemwinninghands| What did Central Huijin buy in a 300 billion dollar amount of A-share ETF?

Since the beginning of this year, as an important part of the "national team", the Central Huijin Investment Co., Ltd. (hereinafter referred to as "Central Huijin") has invested in the "real money and silver" to stabilize the A-share market. It has always been a topic of great concern in the market.

Recently, a number of public offering funds ETF products released a quarterly report, so that the central Huijin into the market to increase the position behavior "surfaced."

According to the incomplete statistics of the 21st Century Economic reporter, in the first quarter of 2024, the net purchases of Huijin in Huatai Berry Shanghai and Shenzhen 300ETF, Yi Fang Shanghai and Shenzhen 300ETF, Huaxia Shanghai Stock Exchange 50ETF, Castrol Shanghai and Shenzhen 300ETF, Huaxia Shanghai and Shenzhen 300ETF respectively reached 888.00 yuan.Texasholdemwinninghands62 million yuan, 75.031 billion yuan, 37.488 billion yuan, 54.326 billion yuan and 58.162 billion yuan, with a total net purchase of more than 300 billion yuan.

As more public ETF products release investor position data in the first quarter, it does not rule out that the net purchase of Central Huijin will rise further.

A private equity fund source told reporters that the above five ETF bought by Central Huijin in the first quarter of this year are index investment products with the largest asset management scale and relatively good trading liquidity in the A-share market, which can not only release the confidence of Central Huijin firmly optimistic about the future trend of the A-share market, but also satisfyTexasholdemwinninghandsWith regard to their liquidity requirements for asset allocation, Central Huijin may focus on the long-term holding strategy.

A 10 billion multi-strategy private equity firm told reporters bluntly, "We and a number of colleagues have also followed the example of Central Huijin, in the A-share asset allocation process to increase the proportion of Shanghai and Shenzhen 300ETF, Shanghai 50 ETFs."

In February this year, the Central Huijin issued a notice that the Central Huijin Company fully recognized the current allocation value of the A-share market, and recently expanded the scope of trading open-ended index funds (ETF) to increase holdings, and will continue to increase holdings, expand the scale of holdings, and resolutely maintain the smooth operation of the capital market. This makes the financial markets pay particular attention to the trend of the central Huijin to increase its positions.

Recently, a number of public offering funds ETF released first-quarter results, revealing the whereabouts of part of the central Huijin ETF investment.

On April 22nd, Huatai Berry Shanghai and Shenzhen 300ETF released a quarterly report showing that in the first quarter of this year, "Agency 1" increased its holdings by 26.356 billion copies. Through comparison, the reporter found that at the end of last year, the share of "Agency 1" was the same as that of Huijin's Huatai Berry Shanghai and Shenzhen 300ETF, both 6.247 billion shares, indicating that "Agency 1" is the Central Huijin. If the average transaction price of this ETF in the first quarter is 3.37 yuan, the net purchase amount of Huijin in Huatai Berry Shanghai and Shenzhen 300ETF in the first quarter reached 88.862 billion yuan.

According to the above calculation methods, in the first quarter, Central Huijin also increased its holdings of Yi Fang to Shanghai and Shenzhen 300ETF, Huaxia Shanghai Stock Exchange 50ETF, Castrol Shanghai and Shenzhen 300ETF, Huaxia Shanghai and Shenzhen 300 ETF45.706 billion, 15.867 billion, 15.604 billion and 16.993 billion respectively. Based on their average transaction prices in the first quarter, the net increase in the holdings of these four A-share ETF products by Central Huijin reached 75.031 billion yuan, 37.488 billion yuan, 54.326 billion yuan, and 58.162 billion yuan respectively.

The above private equity fund analysis said that the reason why Central Huijin Company bought the above ETF products is that the index of these ETF products is more representative. For example, the CSI 300 Index almost includes a group of listed companies with the best performance, fundamentals and growth in the A-share market, which can play a good role in stabilizing A-shares and bullish on the future trend of A-shares. Second, the stock asset management of these ETF products is large and liquid, which can meet the liquidity requirements of the central Huijin and other large funds for asset allocation; third, the rate of ETF products is relatively low, which can significantly reduce the cost of entering the market and adding positions for the "national team" such as the Central Huijin.

"more importantly, the purchase of these A-share ETF products by Central Huijin reflects the national team's high recognition of the low valuation of A-shares and the index at the bottom, which helps to enhance the confidence of all kinds of funds to buy A-shares at the bottom of the market." He pointed out.

It is worth noting that due to the increased volatility of A shares, Central Huijin has continued to increase its positions in these ETF products to stabilize the market since the second half of last year.

"in the first quarter of this year, the increase in the holdings of A-share ETF products of Central Huijin was significantly stronger than in the second half of last year, indicating that the national team has a more decisive attitude towards stabilizing the A-share market and boosting market confidence." The aforementioned tens of billions of multi-strategy private equity firms said.

It is worth noting that the "national team" to increase the holdings of A-share ETF is not limited to broad-based ETF products such as Shanghai and Shenzhen 300s and SSE 50s. Previously, Guoxin Investment Co., Ltd., a subsidiary of China Guoxin Holdings Co., Ltd., also increased its holdings in the CSI New Central Enterprise Science and Technology Index Fund.

Some institutions have noticed that in the first quarter, Yi Fangda Chuang 50ETF received more than 11.8 billion holdings from a large investment institution. Based on the net value at the end of the quarter, the large investment institution bought a cumulative amount of about 10 billion yuan in the first quarter. The market once thought that this large investment institution might be the Central Huijin.

"whether this large investment institution is Central Huijin or not, a significant trend is that the investment scope of the national team is no longer limited to wide-based ETF, and scientific and creative ETF is also a new target for their investment, because it can also share the dividend of iterative upgrading of China's technology industry." The multi-strategy private equity firm with a scale of 10 billion yuan said bluntly.

It is worth noting that the Central Huijin and other "national teams" continue to increase their holdings of A-share ETF products, which is boosting the confidence of more funds to invest in A-shares.

A number of private equity fund personages told reporters that as more and more public ETF disclosed the increase in holdings of the "national team" in the first quarter, their interest in the configuration of wide-base ETF products has also increased.

"for subjective strategy private equity funds, broad-based ETF products such as CS300 and SSE 50 may be good bottom targets. On the one hand, these ETF products include many listed companies with high dividends and high dividends, which is in line with their allocation strategy of listed companies with high dividends and high dividends. On the other hand, these ETF products cover many excellent listed companies, which can help subjective strategic private equity funds avoid the risk of stock selection errors." The aforementioned private equity personage pointed out. For quantitative strategy funds, they are studying the profit opportunities of statistical arbitrage strategies between ETF net value and market price. Although this kind of statistical arbitrage strategy has a relatively large workload, it can provide an annualized stable return of 5% and 7%. It can enhance the overall return of private equity funds with quantitative strategies.

A chief representative of the Asia-Pacific region of the European asset management agency told reporters that the Central Huijin and other "national teams" continued to increase their holdings of A-share ETF products, which also brought new inspiration to them in the allocation of A-shares. Specifically, in the A-share market, broad-based ETF such as Shanghai-Shenzhen 300 integer and Shanghai Stock Exchange 50 Index include many state-owned enterprises listed by central enterprises-the comprehensive and normative social responsibility reports or ESG reports issued by them are often better than other A-share listed companies, so overseas capital investment in broad-based ETF products can not only effectively solve the liquidity risk of A-share assets, but also meet their own requirements for ESG investment.

A multi-strategy private equity fund manager told reporters that as the "national team" continues to increase its positions in ETF products linked to the central enterprise innovation index and the central enterprise science and technology leadership index, they also aim at indexed investment products such as Kechuang 50ETF.

"the state actively promotes the development of high-tech industries and emerging strategic industries, and this kind of index products will continue to be held by the national team, as well as higher investment safety boundaries and potential high return space." He pointed out. Especially in the period of rapid change of investment style in the A-share market, following the "national team" to invest in A-share ETF products may be able to achieve a more robust return on investment in the medium and long term.